APA Group – FY18

Posted on | by Leon Hinde

APA’s FY18 operating results were ahead of market consensus with underlying profit growth of 6%.

FY19 forecasts suggest low single digit growth with EBITDA guidance in the range of $1.55b to $1.57b.

The ACCC is expected to release a Statement on, or before the 13th September, expressing its preliminary concerns about the take-over by CKI, (offer price$11 per share).

Further price retracement back towards $9.00 creates another buy opportunity here with APA. The stock now trades on a  forward yield of 4.5%

 

Buy The Dip In BHP

Posted on | by Leon Hinde

Shares of BHP have found support just above $32.00 after Wednesday’s mixed full year profit report.

While total revenue rose 20% to US43 billion, cost will likely rise as the company lowered its productivity savings target for 2019.

Still, we believe stable Iron Ore prices and strong energy supports BHP. Capital returns to underpin downside risks.In BHP.

BHP goes ex-dividend for 85.6 cents on September 6th.

BHP

Algo Update – JB Hi-Fi

Posted on | by Leon Hinde

Strong retail data supports JB Hi-Fi and we believe the share price represent good value over the medium-term .

JBH has gone ex dividend today for 46 cents, which represents a forward yield of 5%.

We see solid chart support in the $24.80 to $25.00 range.

JB-HI

Healthscope – FY18 Results

Posted on | by Leon Hinde

FY18 results for HSO were below expectations, with underlying EBITDA falling 4.4% to A$376 million

Healthscope will establish an unlisted REIT holding hospital real estate on a lease back arrangement, HSO will retain 51% interest. The deal should help to unlock over $1 billion.

Funds will be used for capital management initiatives, repaying debt and funding future growth.

Healthscope goes ex-div 3.5c on the 6th September.

Healthscope

Amcor – FY18 Earnings

Posted on | by Leon Hinde

Amcor reported FY18 earnings in-line with market expectations. NPAT came in at US$724 millon.

AMC’s earnings headwinds have continued for longer than expected and will likely carry into FY19.

We expect the acquisition/merger with Bemis, (US listed competitor), to  close in the new year and then synergy cost savings should help deliver a re-rating of the share price.

We see Amcor as good long term value although recognise that we are not under current algo buy conditions.

Amcor goes ex-div $0.32 o the 7th September.

Amcor

 

Ansell FY18 – Value to soon emerge

Posted on | by Leon Hinde

Ansell reported FY18 earnings with 5% revenue growth and 15% increase in NPAT. This represented the mid point of guidance. 

FY19 looks a little more challenging, as the outlook is likely to disappoint on higher raw material cost growth.

We will watch for the next Algo Buy signal,  as it is likely the market will over react and a discounted entry opportunity will soon present.

ANN goes ex-div $0.25 on the 24th August.

 

EVN – Algo Update

Posted on | by Leon Hinde

Evolution Mining reported FY18 earnings in line with consensus with revenue of $1.5b, EBITDA $795m, EBIT $360 and NPAT of $250m. 

FY19 production guidance 720k-770k ounces at an expected all in cost $880oz. EVN was one of the lowest cost gold producers over FY18.

EVN declared a fully franked 2HFY18 dividend of 4c. On a full year basis into FY19, we have EVN on a 2.8% yield.

We see EVN as a buy opportunity within the $2.50 to $2.75 price range. Supported by a rebound in the oversold gold price.

 

OZ Minerals – earnings review

Posted on | by Leon Hinde

Our Algo Engine generated a buy signal recently in OZL, the stock is a current holding within our ASX100 model. We see current share price support near $8.50.

OZL announced its 1HCY18 earnings last week, with revenue reported at $534m, EBITDA $290m and net earnings $220m.

The numbers were slightly below market expectations, however,  diversification of its future production base and extended mine life extensions at Prominent Hill, should underpin future earnings growth.

On a forward basis, we have OZL trading on a 2.5% yield into FY19.